MSG Sports Invests in Xtract One Technologies
MSG Sports and Xtract One’s newly formed partnership will see MSG make an initial investment into Xtract One of more than $6 million. That investment will be followed by a second investment of nearly $4 million.
TORONTO—Xtract One Technologies Inc., and Madison Square Garden Sports Corp., have announced that MSG Sports will invest up to $10 million (U.S.) in Xtract One, a security technology company that prioritizes the patron access experience by leveraging AI.
The initial investment of $6.3 million (U.S) is effective immediately, with the subsequent investment of $3.7 million (U.S) being conditional on the approval of Xtract One’s shareholders and all applicable regulatory approvals (together the “Investment”).
“We are thrilled to announce this investment and partnership with MSG Sports. We continue to see impressive growth in market interest and customer adoption of our security technology solutions,” comments Peter Evans, CEO of Xtract One.
“I believe this relationship will create unique opportunities and benefit multiple industries.”
Xtract One, MSG Sports Deal Undergoes Canadian Trial Period
The companies explain the investment is comprised of the sale of up to 31,925,595 units (each a “Unit”) at a price of $0.42 per unit Canadian. Each Unit will be comprised of one common share of Xtract One (a “Common Share”) and one Common Share purchase warrant (each a “Warrant”) exercisable at a price of $0.60 Canadian for a period of five years following the date of its issuance.
The initial tranche of the Investment comprised the issuance of 20,000,000 Units for aggregate gross proceeds of $8,400,000 Canadian. The proposed second tranche of the investment will be comprised of the issuance of 11,925,595 Units for aggregate gross proceeds of $5,008,749.90 Canadian. All securities issued under the investment will be subject to Canadian resale restrictions of four months and one day, in addition to applicable U.S. resale restrictions. No commission or fee is or will be paid in connection with the Investment.
The Units issued pursuant to the Investment have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements.
The initial and proposed subsequent equity Investment will enable Xtract One to further invest into its advanced security solutions and accelerate its growth into new market segments.
Xtract One adds that its products and technologies address perimeter screening and security applications, replacing obsolete walk-through metal detectors with a fast, frictionless entry experience, while simultaneously providing a security solution that delivers exceptional experiences and safer environments.
Xtract One will hold a special meeting of shareholders to obtain disinterested shareholder approval of the second tranche of the Investment, currently scheduled for April 11, 2023.
More news from Xtract One: Threat Detection Provider Patriot One Rebrands to Xtract One Technologies
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